The UK economy today had a double problem with bad news as the locksmith sector saw its weakest expansion since March and business confidence reached its lowest level in nearly a decade.
Markit / CIPS Services 'recent Purchasing Managers' Index shows that the sector has continued to grow. In October, however, he fell to 52.2. That's less than 53.9 in September and the Lowest since March, when Britain was swept by the beast from the east.
Markit said the "disappointing" numbers were proof that Brexit's concerns demanded an "increasing toll" on the UK economy, but also reflected a broader global slowdown and subdued consumer spending.
The weakest results were seen in consumer-oriented sectors such as hotels, restaurants and leisure, according to Markit
Consumer sectors such as hotels, restaurants and leisure showed the weakest performance according to the survey.
According to a separate report from the Institute of Chartered Accountants in England and Wales, business confidence has fallen to its lowest level since the financial crisis in the face of Brexit concerns.
Around 42 percent of companies said they were less optimistic about the economic outlook for the next 12 months. The index fell to minus 12.3 in the quarter (minus 0.2 in the third quarter).
The ICAEW survey of 1,000 companies found confidence in the last three months of the year could be 0.1 percent.
"Business confidence is at its lowest level since the financial crisis ten years ago," said ICAEW CEO Sharron Gunn.
"Leaving the EU and its potential implications is a priority for all. This is a difficult time to run a business, let alone finance the large investments that the UK economy will need after Brexit to drive growth. "
According to Markit, companies generally saw a sharp rise in commodity prices, mainly due to higher transportation costs and rising salaries and a weaker pound, which made imports more expensive.
The decline in the services sector, which accounts for around 80 percent of UK economic output, contributes to recent figures in manufacturing and construction services.
Production activity has dropped to a 27-month low as the construction sector grew, but contract growth weakened and confidence eased to a six-month low.
Economists said that this will cause economic growth to "weaken" sharply in the fourth quarter. The forecasts range between 0.1 and 0.3 percent.
Chris Williamson, chief economist at IHS Markit, said: "Along with the manufacturing and construction surveys, the October purchasing services manager pointed out that the economy is growing at a quarterly rate of just 0.2% leads to a weakening of GDP growth in the fourth quarter. & # 39;
While a number of companies found that uncertainty surrounding Brexit undermined operations, the UK economy faces other headwinds, Markit said.
Services: The reading in October is the lowest since March
"[…] The survey findings also suggest that the economy is facing other headwinds, including a global slowdown, trade wars, heightened geopolitical uncertainty and tightening conditions in the financial markets, "Williamson said.
"It therefore remains unclear to what extent Brexit's concerns aggravate or obscure a more general slowdown in the economy, which would have a significant impact on policymaking."
Howard Archer, chief adviser to the EY ITEM Club, had higher expectations and projected GDP growth of 0.3 percent for the fourth quarter.
He also said that the "thoroughly disappointing" PMI survey meant that the Bank of England would not raise interest rates until the UK left the EU in March next year.
Bank policymakers unanimously voted to hold rates at 0.75 percent last week, but stressed that their expectations were based on a "smooth transition" for Brexit.
If the UK is hit hard by the EU after 29 March 2019, most likely in the case of a no-deal scenario, the MPC is generally expected to cut interest rates, but pointed out that they are could also rise.
Bank of England Governor Mark Carney said an increase was not the most likely scenario.